Moody’s has affirmed India’s outlook as stable but cautioned about potential risks from escalating political tensions or weakening checks and balances. Despite vulnerabilities to event-driven risks, Moody’s recognized India’s strong economic fundamentals, including high growth potential and sound external position. The agency highlighted the gradual improvement in India’s fiscal metrics amid robust growth prospects but warned of upside risks to inflation and debt affordability. Moody’s also anticipates a rise in private investment post-2024 elections and suggests that progress in fiscal consolidation could positively impact India’s rating, while continued increase in the debt burden may exert downward pressure.